It is absolutely never too early (or late) to start thinking about saving for your retirement, and frankly, smart financial habits, in general, aren’t as common as they should be in today’s crazy world. To extend a helping hand, we figured we’d introduce you to what we consider to be an incredible opportunity – the Roth Individual Retirement Account (IRA).
Here are some key points to help you understand exactly how it works:
What is it?
A Roth IRA is a type of retirement account that you can open individually. There are no tax deductions for Roth IRA contributions, and because all of the money you put in a Roth IRA is your own, you’re allowed to withdraw it whenever you need to both tax and penalty-free. Keep in mind though, this does not apply to whatever earnings you may have made on those contributions.
What does it do?
Putting your savings in a Roth IRA, like the kind Finhabits offers, gives your money a chance to grow over time. The longer you leave it there, the better chance it has to earn you more money because we invest your contributions in the stock and bond markets for you. Think of it this way: your investment is like a snowball rolling down a hill – the further up the hill you start rolling, the bigger it will be by the time it reaches the bottom, and the best part about the Roth IRA is that you won’t pay any taxes as the snowball grows! The reality is that you don’t have to do much work along the way, but it’s up to you to give it the first push.
How can Finhabits help?
By opening a Roth IRA with Finhabits, we’ll invest your savings for you in a personalized, diversified portfolio that will help grow your hard-earned money over time.
Finhabits makes it easy to start a Roth IRA in just 10 minutes. Our mission is to help everyone get into the smart habit of investing for the future, especially those without an employer-offered 401(k), so you can forget about complex paperwork and expensive fees. And don’t worry if you don’t have much experience investing, our app is designed with everyone in mind!
To open an IRA account, visit Finhabits.com or download the app from the App Store or Google Play.
The Finhabits app makes investing in your future an easy habit. Put your money to grow over time while you save – it’s all automated, and in just 10 minutes, you can open Roth or Traditional IRAs as well as regular investment accounts. It’s that simple.
Finhabits does not provide tax advice. Please contact your tax professional for any questions regarding your taxes.